SINGAPORE: Indonesian e-commerce firm Bukalapak is targeting to raise more than US$1bil (RM4.15bil) in its initial public offering (IPO), 25% more than previously planned, on indications of strong investor demand for the country’s first tech unicorn listing, two sources familiar with the matter said.

       Bukalapak, which counts Singapore sovereign investor GIC and Microsoft among its backers, is set to be the biggest local listing in 13 years and the largest ever by a startup in the country.

       The expanded IPO target size shows investors are keen to get their hands on relatively rare technology sector offerings in a region that boasts a growing consumer class.

       It also underscores the companies’ hunger for capital as they pursue rapid growth. Regional ride-hailing-to-payments firm Grab sealed a record US$40bil (RM166.48bil) merger with a US special-purpose acquisition company for a US listing.

       The books for Bukalapak’s IPO will open this week for about 10 days, and will be followed by a listing in August, said the sources who declined to be identified as they were not authorised to speak to the media.

       “We are constantly exploring opportunities for the company to continue to grow and develop financially.

       “However, for now, we have not made any decisions, ” Sufintri Rahayu, vice-president for corporate affairs at Bukalapak, said in an email, when asked about the IPO.

       Reuters reported last month that the IPO could raise between US$500mil (RM2.08bil) and US$800mil (RM3.33bil), depending on investor demand and market conditions.

       The sources said the 11-year-old startup is likely to be valued at more than US$5bil (RM20.8bil), doubling its valuation from two years, and is set to sell a stake of about 20% in the IPO.

       They said investor demand is mainly from local and regional funds, with interest also coming from newer tech-focused US investors.

       With a population of 270 million, South-East Asia’s largest economy has one of the world’s fastest-growing online shopping sectors and, like elsewhere, the sector has got a boost from stay-at-home consumers during the Covid-19 pandemic.

       Bukalapak, which in Bahasa Indonesia means opening a kiosk in the market, trails leaders Tokopedia, Sea Ltd’s Shopee and Alibaba’s Lazada in Indonesia’s US$40bil (RM166.5bil) e-commerce market measured by gross merchandise value. — Reuters